Tesla Energy is poised to end 2023 on a strong note. This was hinted at by a fleet of 270 Megapack batteries that were recently sighted at the Megafactory in Lathrop, California.
The Megapack is Tesla’s largest battery storage unit that’s designed specifically for grid use, and it has been successfully deployed in key projects across the globe. Tesla offers two variants of the Megapack: a 2-hour version that offers 1.9 MW of power and 3.9 MWh of energy and a 4-hour variant that offers 1 MW of power and 3.9 MWh of energy.
As per Tesla’s order page for the flagship battery storage unit, the Megapack is listed with a price of $1,989,290 for its 4-hour variant including installation, and $2,243,750 for its 2-hour version with installation. Without installation charges, the 2-hour Megapack is listed with a price of $1,454,540, while the 4-hour version is listed with a price of $1,378,030.
The Megapack fleet was spotted by Tesla watcher Met God in Wilderness, who has been observing the activities in the Fremont Factory and Lathrop Megafactory for some time now. In a recent flyover, the drone operator spotted 113 Megapack batteries in the Lathrop Megafactory’s staging area. Another 157 Megapacks could be seen in a nearby staging area across the road.
The sighting of the Megapack fleet suggests that Tesla Energy is looking to end the year on a strong note. While Tesla Energy is typically eclipsed by the company’s electric vehicle business, the division has shown some momentum this year. In Tesla’s Q2 2023 Update Letter, the company noted that the Lathrop Megafactory is contributing significantly to the growth of Tesla Energy as a whole.
“Energy storage deployments increased by 222% YoY in Q2 to 3.7 GWh, another strong quarter due to the ongoing ramp of our first dedicated Megapack factory (Megafactory) in Lathrop, CA. The ramp of this 40 GWh Megafactory – the first of many – has been successful with still more room to reach full capacity,” Tesla noted in its Q2 2023 Update Letter.
Watch a recent flyover of the Fremont Factory and the Tesla Megafactory in the video below.
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Tesla Megafactory in Lathrop spotted with 270 Megapack batteries as Q4 begins
Tesla received news this morning that it would gain two new adoptees of its North American Charging Standard, or NACS, as Hyundai and Kia both committed to using the connector for its electric vehicles in the U.S. and Canada.
They are the two most recent companies to make the change, as Honda agreed to jump to NACS in September.
Hyundai is set to adopt the NACS in the fourth quarter of 2024 in the U.S., with Canadian vehicles to follow in the first half of 2025. The deal means Hyundai EVs will gain access to the more than 12,000 Tesla Superchargers across North America, doubling the size of DC fast-charging options for those who choose to drive the company’s EVs.
“Our collaboration with Tesla marks another milestone in our commitment to delivering exceptional EV experiences to our customers,” Hyundai Global President and COO José Muñoz said. “This new alliance will provide Hyundai EV owners confidence in their ability to conveniently charge their vehicles and complements our joint venture company to create a new, high-powered charging network with at least 30,000 stations across North America.”
Hyundai’s commitment will help bring a more well-rounded and more convenient ownership experience to those who drive the EVs that operate on the company’s Electric-Global Modular Platform (E-GMP). These vehicles include both the IONIQ 5 and IONIQ 6.
“We’re proud to welcome Hyundai as the latest adopter of the North American Charging Standard.” Senior Director of Charging at Tesla Rebecca Tinucci said.
Hyundai company Genesis will also be apart of the NACS “coalition,” as CEO Elon Musk once called it.
In addition to the partnership with Hyundai, Tesla has also added Kia to its list of automakers that will adopt the NACS.
Welcome Kia owners to Superchargers across North America ⚡️
Kia’s EVs will also gain access to the North American Tesla Supercharger layout in Q4 2024, while current Niro EV and EV6 drivers, along with future EV9 owners, will have access via a soon-to-be-released NACS adapter and software updates with activation and payment via Kia Connect.
“As a leader in electrified mobility, Kia offers a growing number of world-class EVs with high-speed DC charging capabilities that will now be supported by the NACS charging network,” Sean Yoon, President and CEO of Kia North America and Kia America, said. “Having this kind of sprawling access to chargers will no doubt boost customer satisfaction, elevate the EV ownership experience, and enable drivers to reach more destinations across the continent on electricity.”
Hyundai and Kia are the tenth and eleventh car companies to adopt NACS since Tesla first struck deals with Aptera and Ford, which looked to secure more charging infrastructure for their customers.
The companies join Aptera, Ford, General Motors, Honda, Rivian, Polestar, Volvo, Fisker, and Mercedes-Benz as automakers to adopt the NACS standard.
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Tesla gets its newest adoptees of NACS in Hyundai and Kia
Transitioning to renewable energy requires a multi-faceted approach, and power storage from sources such as solar and wind energy will play an increasingly important role in that playbook in the future. To tackle this problem, former Northvolt and Tesla workers have joined forces to focus on the scalability of battery production with the new company Peak Energy.
Peak Energy aims to mass-produce giant battery storage systems for renewable sources such as wind and solar (via CNBC). CEO and Founder Landon Mossburg formerly worked at Tesla and went on to work as an executive at Northvolt before founding Peak Energy earlier this year.
The company plans to scale a more affordable battery chemistry than the lithium-ion batteries used in Tesla’s Megapacks, instead hoping to produce large-scale battery systems with lower-density, lower-cost sodium-ion technology.
Since the company plans to mass-scale an existing product, Peak Energy President and COO Cameron Dales notes that they don’t consider the company a startup, although it only started in June. Interestingly, Peak Energy is looking to partner with a technology company specializing in battery tech, but specifically one that doesn’t yet have the ability to scale its products.
“A normal Silicon Valley startup is 10 years in the lab, come up with a better mousetrap and go to market. We’re completely the opposite,” Dales told CNBC in an interview.
The company plans to make individual sodium-ion battery cells, roughly the size of a loaf of bread, according to Dales. These cells will then be used together to make larger modules about the size of a filing cabinet. These filing cabinet modules could be deployed at solar or wind farms at volumes of 50-100 per order.
Credit: Peak Energy
With 100 blocks, Mossburg explains, the battery system is expected to be able to power as many as 62,500 homes for up to four hours.
He also thinks that the company’s battery systems could cost around half the cost of a Tesla Megapack’s $1.3 million before installation, though it’s still too early for the company to have a price on its products.
“In the battery market it turns out the rarest commodity is not the technology — there are many excellent ideas out there at academic labs and startups — but rather the ability to scale to manufacturing,” Mossburg said. “The difficulty of manufacturing scale up is one of the reasons you see so many ‘breakthrough battery technology’ announcements but very very few companies who actually reach market.”
The company has also announced a $10 million funding round led by Eclipse Ventures’ Greg Reichow, a former Tesla executive who was in charge of battery, motor and electronics manufacturing before going on to lead global manufacturing. Crucially, Dales points out to CNBC that Reichow also led the development of Tesla’s Giga Nevada battery factory with partner Panasonic, which he considers the first mass-scale battery factory in the world.
TDK Ventures, owned by Japanese multinational electronics manufacturer TDK, will also join the funding round.
“The number one issue we face as it relates to expanding renewable energy sources is storage,” Reichow said. “This problem must be solved, but the existing approaches using lithium-ion and other technologies are not yet at a price point that enables the kind of scaling that society needs across sectors.”
The U.S. Energy Information Administration forecasts battery storage capacity to increase from just 9 gigawatts last year to as much as 49 GW by 2030 before jumping to 247 GW in 2050. This projection shows demand for mass-scale battery storage will continue to grow, especially as transportation and other sectors shift toward renewable energy sources.
Peak Energy currently hopes to produce “double digit gigawatt” amounts of battery cells by 2030, set to be used for its own battery systems and other applications. According to Mossburg, building a battery factory will take between $50 million and $100 million per GW. He also says a 30 GW factory would have between 2,000 and 3,000 workers, requiring a 1-2 million square-foot space.
Mossburg has experience scaling battery production at Northvolt, founded by former Tesla Global Head of Sourcing and Supply Chain Peter Carlsson, who worked for the automaker from 2011-2015. By the time Mossburg left Northvolt, the company had grown to employ 4,000 people from just 300 only 18 months prior.
″We’re running a playbook which I and the rest of the executive team initially demonstrated and deployed at Northvolt,” Mossburg said.
